Comments From HP Transcript That Pertain To The Bakken
Transcript here.Mechanical and SCR rigs are going to the sideline and are being replaced by new technology AC drive rigs. And H&P FlexRigs continue to lead this replacement cycle.
I think that we're seeing the market shift to more and more pad-capable rigs. We lead in that space. And I think we're going to continue to see customers look for that. We've said -- we've talked about all of our pad-capable rigs are AC drives.Q: in light of the general lack of sense of urgency for putting new rigs to work or the increased drilling efficiency, ... what's your sense on how your customers are looking at spending plans in the second half of the year?
A: what we're hearing is the improvement in commodity prices has been off of plan and you know that they did a lot of their budgeting in the $80, $85 range and stress test that down to $70 to $75. And I think that's the world they expected to see. And now, we're in a world where we have prices in excess of $100. .... So I think that we're hearing a more upbeat sense from our customers and discussions.
I just remembered, we have had some conversations as well on FlexRig5s in the Permian as well. But again, we're still a little bit early on as much as the pad drilling as we've seen as an example in the Eagle Ford or the Bakken. But I do think we'll have FlexRig5s. As that market matures and goes to more pad drilling, I think, we'll see that happen.Q: First, just wondering on rig efficiencies and how much is left out there?
A: Even with all the improvements that we've seen over the last 3 years, we continue to see improvements in 2013. And as we've said before, Dave, it's not just the rig, it's a lot of other things associated with the rig and working together as a team with your customer.
... old mechanical rigs, it's about 1,000-horsepower, that take 6, 7 days to move, FlexRig can move in 3 days.For a discussion on AC rigs, look at this very, very old, 2006 Oil & Gas Journal article:
Nabors Drilling is introducing a new series of programmable AC electric (PACE) rigs. The rigs are being built in North America, the Middle East, and in China, and moving into many markets.
Nabors says that AC power provides more accurate control of speed and torque than direct current. AC electrical systems also require less maintenance and facilitate online diagnostic checks of equipment and systems. AC-powered drilling rigs have fewer electrical connections and better motor efficiency and produce less noise and fewer emissions, enjoy better power distribution, says the company. Nabors has been working with AC top drives for more than a decade.The HP transcript refers to "SRC rigs" as the older, mechanical rigs. I assume SRC stands for a silicon-controlled rectifier, converting AC to DC, but this is way beyond my expertise. But it helps with the lingo that you might hear being used in the Bakken.
